Tag: supply curve and price determination in the market

Questions Related to supply curve and price determination in the market

The public sector under a mixed economy provides __________ so as to promote economic development.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. consumer goods

  2. economic infrastructure

  3. luxury goods

  4. all of the above

Show answer
Correct Option: B
Explanation:

In a mixed economy, private decisions are intervened by the government due to which all the major economic decisions related to economic development is taken by the government i.e. public sector which includes economic infrastructure, development of health and education etc. 

Under mixed economy framework, free markets and price mechanism operate under the control and regulation of the government.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

In a mixed economy, private decisions are intervened by the government due to which there is problem in price mechanism where prices of a commodities are determined by the forces of demand which involves consumers and supply which involves producers and labours with exception set by government on some basic commodities. 

The government in a mixed economy controls production in _________  as well as _________ sector so as to ensure adequate availability of necessities.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. primary, industrial

  2. public, private

  3. banking, agricultural

  4. public, construction

Show answer
Correct Option: B
Explanation:

In a mixed economy both private as well as public enterprises utilize the resources for the production of goods and services in  the economy for personal as well as social gains where government audits the overall production to ensure adequate availability of goods and services in the economy. 

The basic economic problems are solved in the public sector of a mixed economy through decision making by the planning authority.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

In a mixed economy, the public sector price mechanism i.e. price affects the demand and supply of the commodities is directed by a centrally based planning authority that controls the price mechanism to certain limits and regulates it to protect civilians from fraudulent practices.

In the private sector of a mixed economy, ____________ plays an important role in solving the basic economic problems.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. price mechanism

  2. planning authority

  3. government

  4. consumers

Show answer
Correct Option: A
Explanation:

In a private sector of a mixed economy, price mechanism takes a very prominent role as in such sectors price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and purchase by the demand sector i.e demand will increase if price decreases and vice-versa. 

The ___________ sector in a mixed economy decides 'what to produce and how much to produce' based on the overall national objectives.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. private

  2. public

  3. industrial

  4. agricultural

Show answer
Correct Option: B
Explanation:
In a mixed economy, public sector resolves the problems of 'what to produce and how to produce?' keeping in mind the social welfare of the economy which includes overall economic growth and development, less input and factor prices for the availability of resources and generation of employment opportunities to eradicate poverty from the economy. 

Administered price mechanism is also called __________.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. controlled price mechanism

  2. regulated price mechanism

  3. both A & B

  4. neither A nor B

Show answer
Correct Option: C
Explanation:

In a socialist economy, the price mechanism i.e. price affects the demand and supply of the commodities is directed by a centrally based planning authority that controls the price mechanism to certain limits and regulates it to protect civilians from fraudulent practices. 

Under mixed economy, firms operating in both public and private sectors are left free to adjust their activities to the controlled market forces.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. True

  2. False

Show answer
Correct Option: A
Explanation:
In a mixed economy both private as well as public enterprises utilize the resources for the production of goods and services in  the economy for personal as well as social gains where government only audits the overall production to ensure adequate availability of goods and services in the economy whereas all the operation takes place with free market forces. 

Which among the following influences the choice of method of production used by the public sector in a mixed economy? 

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. Promotion of economic growth

  2. Input/Factor prices

  3. Generation of employment opportunities

  4. All of the above

Show answer
Correct Option: D
Explanation:

In a mixed economy, public sector resolves the problem of 'how to produce?' keeping in mind the social welfare of the economy which includes overall economic growth and development, less input and factor prices for the availability of resources and generation of employment opportunities to eradicate poverty from the economy. 

It is not uncommon in a socialist economy that  ______________.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. private properly is abolished

  2. economic activities are guided by market forces

  3. there is absence of state intervention

  4. people acquire a motive for earning

Show answer
Correct Option: A
Explanation:

In a socialist economy, both private as well as government organisations utilize resources and distribute them for personal as well as social welfare. Society is given more importance as government handles all central problems of the economy. So usually in socialist economy, private property are abolished for social welfare and to bring in equality in the social and economic status of the people.